Just before the Hong Kong market closed for the Lunar New Year festivities, the HSIF extended sideways dipping 55 pts and closing at 21,655 pts.
The index began Thursday’s session at 21,707 pts, only to swing between 21,833 pts and 21,393 pts before settling at 21,655 pts. In the evening session, the index rose 174 pts and last traded at 21,829 pts.
The price action continues to exhibit neutrality despite the momentum slowing down for consolidation.
RHB Retail Research said as long as the index stays above the 20-day moving average line, the bullish structure remains valid.
Post consolidation, the index should resume an upward movement and retest the 22,000-pt resistance. Premised on this, we still hold on to our positive trading bias.
